Stock Monitor: KB Home Post Earnings Reporting

LONDON, UK / ACCESSWIRE / April 10, 2018 / Active-Investors.com has just released a free earnings report on Toll Brothers, Inc. (NYSE: TOL). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=TOL. The Company reported its first quarter fiscal 2018 operating and financial results on February 27, 2018. The US luxury homebuilder's earnings beat market estimates. Additionally, the Company provided guidance for the upcoming quarter and full fiscal year 2018. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for KB Home (NYSE: KBH), which also belongs to the Industrial Goods sector as the Company Toll Brothers. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Toll Brothers most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

For the first quarter ended January 31, 2018, Toll Brothers' total revenues increased 28% to $1.18 billion, and increased 20% to 1,423 units, compared to total revenues of $920.7 million, and 1,190 units, in Q1 FY17. The average price of homes delivered increased to $826,000 in the reported quarter compared to $773,700 in the prior year's same quarter, due to changes in product mixes. The Company's revenue numbers met analysts' estimates of $1.18 billion.

For Q1 FY18, Toll Brothers' gross margin, as a percentage of revenues, was 20.5% compared to 20.4% in Q1 FY17. The Company's adjusted gross margin was 23.7% in the reported quarter versus 23.9% in the prior year's comparable quarter. Toll Brothers' selling, general, and administrative expenses (SG&A), as a percentage of revenues, were 13.4% in Q1 FY18 compared to 14.9% in Q1 FY17.

During Q1 FY18, Toll Brothers' income from operations was $83.7 million, and represented 7.1% of revenues, compared to $50.6 million, or 5.5% of revenues, in Q1 FY17.

Toll Brothers' net income was $132.1 million, or $0.83 per diluted share, in Q1 FY18 compared to $70.4 million, or $0.42 per diluted share, in Q1 FY17. The Company's reported quarter results were favorably impacted by a $31.2 million benefit associated with the revaluation of the net deferred tax liability under the tax reform's lower tax rate. Toll Brothers' earnings beat Wall Street's estimates of $0.54 per share.

Operating Results

During Q1 FY18, Toll Brothers' net signed contracts of $1.69 billion and 1,822 units, increased 36% in dollars terms and 20% in units, compared to net signed contracts of $1.24 billion and 1,522 units in Q1 FY17. The Company's average price of net signed contracts was $927,800 in the reported quarter compared to $816,700 in the prior year's corresponding quarter, driven by strong contract results in California.

For Q1 FY18, Toll Brothers' backlog of $5.58 billion and 6,250 units increased 28% in dollars terms and 21% in units compared to the backlog of $4.35 billion and 5,145 units at the end of Q1 FY17. The average price of homes in backlog was $892,200 in the reported quarter compared to $844,500 in the year ago same period.

Toll Brothers' cancellation rate was 5.3% in Q1 FY18 compared to 5.8% in Q1 FY17. As a percentage of beginning-quarter backlog, the Company's cancellation rate was 1.7% in the reported quarter versus 2.0% in the year earlier comparable quarter.

For Q1 FY18, Toll Brothers purchased 2,109 lots for $326.6 million. The Company ended the reported quarter with 295 selling communities compared to 305 at the end of FY17, and 321 selling communities at the end of Q1 FY17. Toll Brothers ended Q1 FY18 with approximately 49,500 lots owned and optioned compared to 47,800 lots at the end of Q1 FY17.

Cash Matters

Toll Brothers ended Q1 FY18 with $508.3 million in cash compared to $373.5 million at the end of Q1 FY17. At the end of the reported quarter, the Company also had $1.15 billion available under its $1.30 billion, 20-bank credit facility, which matures in May 2021.

During Q1 FY18, Toll Brothers repurchased approximately 4.4 million shares of its common stock at an average price of $47.43, for a total purchase price of $210.0 million. The Company ended Q1 FY18 with a debt-to-capital ratio of 44.2% compared to 45.7% at the end of Q1 FY17.

Outlook

For the full fiscal year 2018, Toll Brothers is forecasting to deliver between 7,800 and 8,600 homes compared to its previous guidance of 7,700 and 8,700 units. The Company is estimating average delivered price to be between $820,000 and $860,000 per home for FY18. This translates to projected revenues of between $6.40 billion and $7.40 billion in FY18 compared to $5.82 billion in FY17.

For FY18, Toll Brothers reaffirmed its guidance for adjusted gross margin to be between 23.75% and 24.25%, and SG&A as a percentage of revenues of approximately 10.0%.

For Q2 FY18, Toll Brothers is projecting deliveries between 1,825 and 1,925 units, with an average price of between $825,000 and $850,000. The Company expects its adjusted gross margin to be approximately 22.8% of revenues for the upcoming quarter.

Stock Performance Snapshot

April 09, 2018 - At Monday's closing bell, Toll Brothers' stock marginally declined 0.37%, ending the trading session at $43.03.

Volume traded for the day: 1.36 million shares.

Stock performance in the previous six-month period ? up 1.65%; and past twelve-month period ? up 21.45%

After yesterday's close, Toll Brothers' market cap was at $6.75 billion.

Price to Earnings (P/E) ratio was at 12.66.

The stock has a dividend yield of 1.02%.

The stock is part of the Industrial Goods sector, categorized under the Residential Construction industry.

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